Civil Engineering MCQs

Page No. 60

What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country ?


aCompany value

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bGoing value

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cGoodwill value

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d Franchise value

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View Answer Franchise value

What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties ?


aBook value

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bMarket value

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cFair value

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dFranchise value

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View Answer Fair value

Salvage value is sometimes known as _____________________?


aScrap value

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bGoing value

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c Junk value

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dSecond-hand value

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View Answer Second-hand value

The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called __________________?


aFair value

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bMarket value

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cGood will value

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d Book value

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View Answer Market value

A mathematical expression also known as the present value of annuity of one is called ____________________?


aLoad factor

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bDemand factor

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cSinking fund factor

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d Present worth factor

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What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?


aAsset recovery

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bDepreciation recovery

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cPeriod recovery

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dAfter-tax recovery

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View Answer Depreciation recovery

Using factor method, the depletion at any given year is equal to ?


aInitial cost of property times number of unit sold during the year divided by the total units in property

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b Initial cost of property divided by the number of units sold during the year

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c Initial cost of property times number of units sold during the year

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d Initial cost of property divided by the total units in property

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What is another term for “unit method” for computing depletion ?


a Initial cost method

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bPercentage method

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cFactor method

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dSinking fund method

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View Answer Factor method

The depletion allowance method of computing depletion is commonly known as ___________________?


aUnit method

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bPercentage method

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cFactor method

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d Sinking fund method

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View Answer Percentage method

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ________________ which ever is smaller ?


aFixed percentage of gross income or the net taxable income

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b Fixed percentage of gross income or 50% of the net taxable income

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c 50% of the fixed percentage of gross income or 50% of the net taxable income

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d50% of the fixed percentage of gross income or the net taxable income

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